Should i go down the road of reclaiming mppi?

Bettybobo

Hello,

Please can anyone give me some advice?

Myself and my partner bought our house around 4 years ago. It was a new build and my first house purchase so the whole process was managed by the homebuilder Miller Homes and their recommended solicitors. We basically just signed where we were told. We noticed that on a monthly basis, an amount if about £60 was getting taken from our bank account but we just assumed it was mortgage related and were too busy to investigate it. I know it sounds silly now but we were just happy to have got our new home in the first place and weren't that money-savvy!

In late 2010 while we did some housekeeping of our finances, trying to see where we could save money, we decided to contact our mortgage provided to ask what the £60 related too. They could not answer us, but we then realised we were paying the money to Cardif Pinnacle. So, we picked up the phone to them to ask them what we were paying them for! It transpired that we had mppi covering both if us for accident, sickness and unemployment, which we must have inadvertently signed up for during the mortgage process! It was then we started to discuss whether we actually needed this or not! We both have professional jobs with provide us both with ample accident and sickness cover so we definitely didn't need that. We could in theory use the redundacy cover but with us both in secure employment and my parents willing to lend money to cover mortgage if we were stuck I decided we didn't need it.

So, here is my questions... Can I claim my mppi payments back? This is based on the following:
- we both already have significant accident and sickness cover
- we weren't even aware we had it until last year
- we don't even need the redundancy cover aspect.

I've just left things as they are for now as I'm worried if we start a claim against them, will NRAM look at us in a bad light when we come to remortgage? Even worse, will they stop our mortgage? Also, do I put a claim into NRAM or Cardif Pinnacle?

I would be so greatful if anyone can provide some advice or anecdotes.

Thanks very much in advance of your reply.

antdon

Its alway worth putting a claim in....
I will only cost you 20 mins to fill in the claim form, and one stamp....

But with the mortgage being so recent your claim is less likely to be accepted. A bit of a long shot in fact.....

But, still, have a go...

And finally if you dont need it, cancel it

magpiecottage

Bettybobo wrote: »

In late 2010 while we did some housekeeping of our finances, trying to see where we could save money, we decided to contact our mortgage provided to ask what the £60 related too. They could not answer us, but we then realised we were paying the money to Cardif Pinnacle.

That is reasonable, the lender was not a party to it.

So, we picked up the phone to them to ask them what we were paying them for! It transpired that we had mppi covering both if us for accident, sickness and unemployment, which we must have inadvertently signed up for during the mortgage process! It was then we started to discuss whether we actually needed this or not! We both have professional jobs with provide us both with ample accident and sickness cover so we definitely didn't need that.

This raises a number of questions. First of these is what is "ample accident and sickness cover". I have a "professional job" but earlier this year I was also incapacitated by an accident. I was left to rely on my own reserves which fortunately I am long enough in the tooth to have but 20 years ago it would probably have resulted in me losing my home.

The second question is how did you get into professional jobs without realising the need to read before you sign something? (You said you just signed where you were told to. Surely when embarking on such a major financial commitment as purchasing a home any professional person, no matter what that profession was, would realise the need to consider carefully what they were doing.


You also means it was a separate direct debit - which came out of your bank account each month but you did not bother to query - despite apparently not knowing what it was.

This presents me with a "plausibility gap".

We could in theory use the redundacy cover but with us both in secure employment and my parents willing to lend money to cover mortgage if we were stuck I decided we didn't need it.

All employment covered by PPI is "secure" - the point of any insurance is that it guards against the unexpected. It works on the principle that the burden of the few is carried by the many. If everybody expects to claim then the risk is uninsurable.

Furthermore, whilst your parents might be willing to lend money, this assumes they will be able to when the need arises. Therefore, this would not normally be a reason to uphold a complaint.

So, here is my questions... Can I claim my mppi payments back? This is based on the following:
- we both already have significant accident and sickness cover
- we weren't even aware we had it until last year
- we don't even need the redundancy cover aspect.

On the basis of what you have posted no.

I've just left things as they are for now as I'm worried if we start a claim against them, will NRAM look at us in a bad light when we come to remortgage? Even worse, will they stop our mortgage?

No they can't do that.

do I put a claim into NRAM or Cardif Pinnacle?

You cannot claim because you have cancelled the policy. You can complain to whoever sold you the policy. That would probably be whoever arranged the mortgage (either the lender or the intermediary).

However, nothing you have said suggests that the policy was unsuitable and I suspect there is documentary evidence to prove that it was.

I would be so greatful if anyone can provide some advice or anecdotes.

Thanks very much in advance of your reply.[/QUOTE]

Bettybobo

Thanks for your advice. Ample sickness and accident cover means we both would get enough to cover our monthly outgoings including mortgage/ loans repayments/living expenses etc. We are both employed full time rather than self employed.

You're right about the signing issue but the solicitor just sent us the paperwork to sign where they put an x and as far as i was aware we were signing up for a mortgage over 25 years. The direct debit was coming out of my partners account and had origially assumed it was relating to the insurance cover we had to take when we got the mortgage.

So my claim would purely be based on the fact it was added without out knowledge and we don't require it. I have not yet cancelled but am in the process of doing that now.

Has anyone else out there been in a similar position?

Thanks again.

dunstonh

Ample sickness and accident cover means we both would get enough to cover our monthly outgoings including mortgage/ loans repayments/living expenses etc. We are both employed full time rather than self employed.

what is ample sickness and accident cover? 30 days, 3 months, 6 months? This is important. You would need to state how much and probably prove it.

So my claim would purely be based on the fact it was added without out knowledge and we don't require it. I have not yet cancelled but am in the process of doing that now.

Very few complaints get upheld on that basis. Some of the banks are giving in on anything but a mortgage adviser/broker wont do so without evidence.

So, what evidence do you have that it was added without your knowledge?
How are you going to argue that case when the advising firm will have your signatures on the application and direct debit mandate?
How are you going to respond to the fact that you paid for it for 4 years without questioning it?

Has anyone else out there been in a similar position?

I know how my compliance company/network would respond to a complaint on this basis. They would reject it unless you prove that you had no financial need for it. The verbal accusation of "you didnt know about it" would be rejected as you have no evidence to support it.